Known for their global presence – Spencer Stuart, Heidrick & Struggles, Russell Reynolds, Egon Zehnder and Korn Ferry – are collectively known as the “SHREK” firms.
It’s an acronym that refers to the five largest executive recruiting firms across the world.
But who are they? What do they offer? And how does their approach compare to the smaller boutique or niche executive search consultancies?
The SHREK firms
With offices worldwide and hundreds of team members, the SHREK firms have a global reach and are often the go-to for global executive search assignments.
Typically working with larger, corporate clients with a global perspective, they serve a variety of sectors including financial services, healthcare and technology, public sector, manufacturing, and FMCG.
Over and above Executive Search assignments, their diversified leadership consultancy services cover areas such as:
- Executive Assessment
- C-level Succession Planning
- Organizational Strategy
- Talent Coaching
- Board Effectiveness
- Corporate Governance Consulting
- Reward and Incentive Programs
These global leadership consultancy firms are increasingly involved in supporting clients with initiatives to promote diversity and inclusion, as well as helping clients develop and implement digital transformation projects.
Boutique, niche executive search firms
At the other end of the spectrum are the boutique or niche Executive Search players.
They are usually owner managed with a much smaller team of executive search consultants, who lead and deliver each search assignment.
These Executive Search firms tend to be found in one or two locations and often focus their expertise on a specific industry or geographic area.
Whilst these boutique Executive Search firms operate on a lower volume of Search Assignments and support fewer clients than the SHREK firms, they usually offer a similar array of services, including:
- Compensation & Reward
- C-Suite Succession Planning
- Leadership Coaching & Mentoring
- Outplacement Services
- Market Intelligence Reports
SHREK vs Niche: The Pros and Cons
Finding and recruiting the right executives to lead your company is a key decision, that will have long-term impact.
Selecting the most suitable Executive Search partner to support your recruitment efforts is crucial.
When deciding whether a SHREK or smaller boutique executive search firm might be better, you need to consider the pros and cons of each.
SHREK firms offer a number of advantages, including:
Well-established with global brand awareness, they are well equipped for senior Search Assignments, such finding a Global CEO for a multinational business.
Their wide-ranging consultancy services, client solutions, and an international network of offices, partners and supporting team members, allows them to attract high-level candidates – including experienced executives from global businesses.
SHREK firms work across multiple sectors and can therefore provide solutions for a broad spectrum of businesses.
But there’s some disadvantages to the SHREKs.
Their reputation and global brand firms is often accompanied by premium fees, which might not always be proportional to the value clients receive. Usually, they will only work on fees against salaries above £500k per annum.
Senior partners and consultants pass work to more junior colleagues, and research may be recycled from prior Search Assignments.
In spite of the number of employees at their disposal, the higher volume of clients means that the resources and project team are actually comparable to that of a smaller firm.
A generic Executive Search process is typically applied across all industries, which can be problematic. Often a more nuanced approach may be needed for different sectors
Processes can be inflexible and lengthy, lacking efficiency and transparency. A SHREK firm can take 8 – 12 weeks to provide a shortlist. This is frustrating if a client wants to move with speed to secure talent.
The range of clients they work with, often means SHREK firms are contractually unable to recruit from other companies they have previously worked with.
A higher number of off-limit candidates can compromise integrity, lead to conflicts of interest and result in a limited talent pool to select candidates from.
And there’s the financial aspect. With invoices issued on time spent, rather than milestones achieved, there’s a risk you may pay handsomely, without securing the talent you’re looking for and regardless of any work provided.
Finally, their success rates, often aren’t as strong as boutique businesses.
The advantages of a niche Executive Search firms
With a specific sector focus, boutique Executive Search firms offer deep industry experience and better connections within their field.
This allows them to complete Searches more efficiently.
They can provide a service that’s more tailored to the specific needs and culture of their clients, and the flexibility to design a customised talent acquisition strategy.
This enhanced flexibility, allows them to be more adaptable to any changes in the Search parameters or responsive to market conditions.
Their size naturally means they have fewer clients, which mean fewer off-limits companies, allowing them to access a broader candidate pool.
Typically, owner managed businesses, niche Executive Search firms offer a higher level of communication, collaboration and client care.
They can dedicate more time and resources to each Search, ensuring a higher level of engagement and attention to detail.
A smaller team gives clients the benefit of a consultative approach to Search Assignments – with Senior Executive Search Consultants taking a hands-on approach to delivery, as opposed to passing tasks to more junior colleagues.
Smaller Search Firms with lower overheads, are often more competitive with their fee structures. Invoices are issued on milestones achieved, not solely on time spent on the assignment.
Furthermore, their success rates are generally higher.
The drawbacks of niche Executive Search firms
Smaller firms may not have the same level of resources and infrastructure as larger firms. This may impact their ability to handle multiple high-level searches simultaneously.
Their lower headcount may reduce their ability to take on multiple executive search assignments simultaneously too, especially as they place a higher priority on being flexible and consultative in their approach.
Niche firms may not have the same level of brand recognition and prestige as the larger, established SHREK firms, which can influence candidate perception, however an experienced boutique search firm will earn their reputation in the market.
A lack of global footprint may mean a smaller international network and reduced international knowledge, which might not appeal to clients with international operations.
A smaller firm might also struggle to scale their services to meet the expanding needs of a high-growth business.
Focusing on one specific industry, can lead to a risk of bias towards certain candidates or profiles from the ‘usual networks’, rather than searching for those with leadership skills from outside of the sector.
Choosing the Right Executive Search Firm
In summary, while SHREK firms may be suitable for large corporations or specific types of positions, niche Executive Search firms offer distinct advantages for businesses that prioritise industry expertise, a more personalised service and flexibility in their process.
The best choice very much depends your talent needs, timeline, budget and recruitment priorities.
Find out more about our niche knowledge of the property sector and how we find the very best talent for our clients
